Investments in derivatives and structured products by fund managers in Hong Kong grew 53% in 2005 to HK$29.5 billion ($3.8 billion) from HK$19.2 billion in 2004, according to the Securities and Futures Commission’s (SFC) ‘Fund Management Activities Survey 2005’.The survey, which covered 234 firms in Hong Kong, reported a 25% growth in Hong Kong’s fund management business to HK$4.53 trillion last year. This included the business of real estate investment trusts (reits) managers worth HK$38 billion, portfolio managers’ business worth HK$3.46 trillion and registered institutions’ funds worth HK$1.03 trillion.
The survey added that of the total non-reits assets under management worth HK$3.24 trillion, 53% or HK$1.72 trillion was managed in Hong Kong, representing a growth of 18% over 2004. Of the HK$1.72 trillion in non-reits assets managed in Hong Kong, 79% was invested in Asia.
The report also found that HK$1.19 trillion, or 69% of assets managed in Hong Kong, was invested in equities. Investments in cash, deposits or money market instruments amounted to HK$88.4 billion in 2005, but as a proportion of the total asset allocation, the share fell marginally to 5.1% in 2005 from 5.6% in 2004.
“The significant growth in derivatives/structured products showed increasing investors’ interest in searching alternative investments,” the report said.
Topics: Hong Kong
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